Products:

Blue Star offers a wide variety of modern stylish room airconditioners for both residential as
well as commercial applications. It also manufactures and markets a comprehensive range of
commercial refrigeration products and cold chain equipment.

Product segment:

ELECTRO MECHANICAL PROJ ECTS AND PACKAGED AIRCONDITIONING SYSTEMS

This business segment covers the design, manufacturing, installation, commissioning and
maintenance of central airconditioning plants, packaged/ducted systems and variable refrigerant
flow (VRF) systems, as well as contracting services in electrification, plumbing and fire-fighting.
After-sales services such as revamp, retrofit and upgrades are also included in this segment
This comprises central and packaged airconditioning as well as electrical projects and plumbing
& fire fighting projects. The central and packaged airconditioning business involves design,
engineering, manufacturing, installation, commissioning and support of large central
airconditioning plants, packaged airconditioners and ducted split airconditioners. In addition to
this, Blue Star promotes after-sales service as a business, by offering several value added
services in the areas of upgrades and enhancements, air management, water management, energy
management and LEED consultancy for Green Buildings.
The Company also executes building electrification contracting projects and offers expertise in
the areas of electrical design and engineering, supply and installation of entire power systems as
well as liasioning, approvals, commissioning and asset management. Blue Star has extended its
mechanical contracting offering to include plumbing and fire fighting projects. With this, Blue
Star has developed capabilities for executing integrated MEP (Mechanical, Electrical and
Plumbing) projects.
COOLING PRODUCTS :
Blue Star offers a wide variety of modern stylish room airconditioners for both residential as
well as commercial applications. It also manufactures and markets a comprehensive range of
commercial refrigeration products and cold chain equipment
comparatively strong performance of Cooling Products, Packaged Airconditioning Systems and
After Sales Service. While growth in sales and profit may not have been exciting in these
segments last year, they remain basically healthy, and have produced sufficient profit to enable
the Company to absorb large one-time cost over-runs and losses in the projects business and still

show an overall profit. mainly in the areas of energy-efficient products and eco-friendly cooling
products to meet regulatory requirements, and to be competitive in the market
Blue Star offers a wide range of contemporary window and split airconditioners. The Company
also manufactures and markets a comprehensive range of commercial refrigeration products and
services that cater to the industrial, commercial and hospitality sectors. These include water
coolers, bottled water dispensers, deep freezers, cold storages, bottle coolers, ice cube machines
and supermarket refrigeration products.
Different cooling products:
Screw Chillers / Centrifugal Chillers / Scroll Chillers Double Skin Air Handling Units / Fan Coil
Units / Packaged ACs & Ducted Splits Long Distance Piping Packaged ACs / Hiper Packaged
Acs /Vrf Systems



AIRCONDITIONING Products line
Window Airconditioners / Split Airconditioners
Cassette Airconditioners / Verticool Split Acs
Concealed Split Acs
Professional Electronics and Industrial Systems

The Electronics and Industrial Systems has been the exclusive distributor in India for many
internationally renowned manufacturers of hi-tech professional electronic equipment and
services, as well as industrial products and systems. The Company has carved out profitable
niches for itself in most of the specialized markets it operates in, such as such as Industrial
Projects, Industrial Products and Systems, Material Testing Equipment and Systems (Destructive
/ Non Destructive), Data Communication Products & Services, Testing and Measuring
Instruments, Analytical Instruments and Medical Diagnostic Equipment.
Price is the amount of money or goods for which a thing is bought or sold. Pricing strategy refers
to the methods by which a business calculates how much it will charge for a product or service.
It is based not only on the cost of the product, but also on profit margin and a holistic view of the
market and future viability.
Blue star Pricing Current
The main pricing objective chosen by Blue star air conditioner is product quality leadership.
Blue star thrive to be classified as affordable luxuriesproducts or services characterized by
high levels of perceived quality, taste, and status with a price just high enough not to be out of

consumers reach. Blue star charge a higher price than its competitors by convincing them that
the quality of cooling they get at their home will be similar to what they get at office.
Price differentiator
Universal demand curve says that the higher the price, the lower the demand. After the entry of
multinationals in air-conditioner market, the price sensitivity of air conditioner has increased.
Blue star should either reduce the price of the product to raise the sales volume & market share
or build a product which is perceived to be highly superior without any substitutes.
Pricing Strategy
Blue star also use this technique of Perceived value pricing to price their home air conditioner
at a slight premium to other multinationals. Perceived value is made up of a host of inputs, such
as the buyers image of the product performance, the channel deliverables, the warranty quality,
customer support, and softer attributes such as the suppliers reputation, trustworthiness, and
esteem. For Eg : Blue star prices its 1.5 Split 3 Star air conditioner for Rs 35000 by arriving at
the pricing by the below means of perceived value for the Blue star brand .

Rs 29000 is the a/c price if it is only equivalent to the competitors a/c.
Rs 3000 is the price premium for Blue star superior durability and reliability.
Rs 3000 is the price premium for Blue stars longer warranty on parts and service.
Rs 35000 is the actual price for 1.5 ton Split Blue start a/c.


Recommendations
Electronic media has a very effective reach in each and every potential household, but
Blue Star is not using this media. So Blue Star should stress on electronic media to beef
up its sales.

In the coming years competition will intensify more, so companies will have to fight hard
to woo the customers. Crucial role facilitates price control. In other words, lower down
its cost of production.
It was found that most customers owning ACs were interested in an exchange offer. So,
company can also consider exchange offer scheme to beef up its sales.
Last but not the least the company should introduce their consumer electronics products.
Such as Television and washing machines.









Blue Star Promotions
As we have seen already, Blue Star is the leader in India for the air conditioning needs of a large
number of corporate, commercial and residential customers and has also established leadership
in the field of commercial refrigeration equipment ranging from water coolers to cold storages.
Blue Star primarily focuses on the corporate and commercial markets. These include
institutional, industrial and government organizations as well as commercial establishments such
as showrooms, restaurants, banks, hospitals, theatres, shopping malls and boutiques. The
Company has started pursuing the residential segment with its wide range of sleek and
contemporary Room ACs.
Scanning through the marketing materials of Blue Star (Appendix A, B) we can make some key
observations.
1. Few of their TV commercials (eg. Hot and Cold areas in the same office?, Is your AC
circulating stale air?) are indicating that they are the experts in cooling
2. A few others are on their technical leadership in commercial cooling (Hot and Cold areas in
the same office? )
3. Yet others are on what cooling (or lack thereof) can do to an otherwise ordinary executive
(daddy cool)
4. Then the rest is about office like cooling at home.
5.
6. All the commercials are centered around a few strong themes
o talk to the experts Blue Star is the air conditioning expert

o Careful choice of the people in the commercials. They have deliberately NOT used a
celebrity endorsement. The commercials feature ordinary office staff. The celebrity is
the Blue Star Air conditioner itself!
o office like cooling at home

7. It is very evident that Blue star is very proud of their leadership position in the commercial
cooling space and uses that as a means to influence the home cooling solution
8. They are targeting mostly executives at mid to high level, mostly middle aged, well
accomplished individuals who enjoys blue star cooling at work and considering home as an
extension to their office.
9. Though distinctly, they are associating some sense or image of success with Blue Star air
conditioning

Clearly Blue Star is cashing in on their market leadership in the air conditioning space to
create a brand value in the domestic air conditioning space. They dwarf their international
competition with their pride and superiority in Indian market.

In our opinion, rather than dog fight on price in the given constrained home cooling space,
Blue Stars approach to maintain the lead in the office cooling segment and convert the
beneficiaries from that to their advantage in home cooling segment is a smart move and is the
right approach to be continued.
Our recommendation in the home segment for BlueStar is to continue their technical
leadership and can be the innovators to bring in power savings, smart acs and mobile
sensing, weather sensing air conditioners.

One of the key aspects of Blue Stars success is its Differentiated world class customer
service (https://www.youtube.com/watch?v=YUt3sCEEXtk). They treat their customers with
utmost dignity and respect. It is in the bone and marrow
(https://www.youtube.com/watch?v=CFITufPd6tE) of the company. This I being a key
customer differentiator, Blue Star should aggressively retain and develop it. Leveraging on
its scale on the commercial cooling segment and the systems built to support it, it will be a
value added differentiator. Its approach of office first and home next, the executives and
employees in the company gets addicted to this customer service which its competitors
cannot meet.

Its marketing position is not as the First movers but as fast followers aligns to one of its key
strengths of profitable growth. Blue Star allows other companies to test the market and
leverages on that aggressively. It is adopting the same in the home cooling segment as well.

With the growing population of middle to high class families, rapid urbanization and with
less predictable and aggressive weather fluctuations as a result global warming Blue Star
really has cool days ahead.


BIBLIOGRAPHY
Internet Search

Bluestarindia.com
Wikepedia.com
www.encyclopedia.com

Books Referred:

Marketing Management by Philip Kotler



Appendix A Blue Star Print Media Promotions





Appendix B Blue Star TV Commercials

Daddy Cool
50 degrees
Cools the boss
Get office-like cooling at home - II
Get office-like cooling at home - I
Want office-like cooling at home?
Imagine an AC smart enough to control your cooling
Is lack of refrigeration killing your vegetables?
Hot and Cold areas in the same office?
Is your AC circulating stale air?
Does your AC rob you with high power bills?
Samples below

sleepwalker.zip GYM.zip



Appendi x C: Daddy Cool commentary in the press
The film features a middle-aged male protagonist. In an office cooled by a Blue Star AC (at 24 degrees),
he displays a series of spirited dance moves dressed in a formal suit. While people are busy at work, he
grooves to the BoneyM song Daddy Cool. When he steps out of office, the music stops and so does his
dancing. His sombre mood lifts as he enters home - the song and dance resumes. The home is also
cooled by a Blue Star AC, it is revealed, at 24 degrees. A voice over says, Cool in the office, cool at
home. A super signs off saying, Breathe Easy.
Girish Hingorani, GM corporate communications and marketing, Blue Star, said, The market for
inverter ACs is showing promising signs of growth. Significant power savings, intelligent features and
perfect cooling are likely to make this technology the future of room ACs. Being leaders in office cooling,
we realise that its a matter of time before this category catches the fancy of the home buyer. This ad
highlights the sheer delight of experiencing the Blue Star inverter AC and will help us reinforce our expert
image.
Robby Mathew, national creative director, Interface Communications, said, Blue Stars advertising has
always been quirky. And this one is no different. A corporate type who cant dance to save his life, breaks
into some ludicrously cool dance steps in the office and then at home. All to make the point that Blue
Star is the company that offers office like cooling at home!
Shailesh Gupte, VP, Interface Communications, added, The advertising builds on the proposition of
Office like cooling at home in an entertaining way. An iconic track and a cool guy dancing, is sure to
stay back in the viewers mind.